KUALA LUMPUR: The new government is steadfast in raising the economic well-being of the people, restoring fiscal health and implementing various institutional reforms to improve accountability and transparency, crucial for Malaysia to roar again as an Asian Tiger.
Finance Minister Lim Guan Eng said such structural changes would ensure sustainable growth, the stability of the capital market and the monetary sector, alongside transforming Malaysia from a global kleptocracy into a rule-based democracy.
He said only a rule-based government focused on institutional reforms, sustainable economic growth and economic well-being of the people can provide clarity, certainty, and confidence, which are needed for a conducive business environment that can engender confidence among the public and investors.
“(Especially) the objective of enhancing the people’s economic well-being would only be meaningful if their purchasing power can be increased and their living costs contained,” he said in the Economic Outlook 2019 report presented in Parliament here yesterday.
One major people-centric initiative to achieve the goal by the new government is the zero-rating of the Goods and Services Tax (GST) from June to August 2018, which was later abolished on Sept 1, 2018, and replaced with the Sales and Services Tax (SST).
“While the Federal government’s revenue would be reduced by RM17 billion in 2018, as a result, it has helped lessen the tax burden, reduce price rises and give the money back to the people.
“To optimise public expenditure and resources, the government has restructured all of its ministries and agencies. Furthermore, the government will run on the principle of Competency, Accountability, and Transparency (CAT) to safeguard national interests and future-proof the public sector from abuses and corruption,” he said.
These initiatives, together with various institutional reforms like the separation of roles between the Prime Minister and Finance Minister, will restore public confidence in the government.
At the global stage, despite headwinds due to trade wars, volatile commodity prices, financial market uncertainties and geopolitical tensions, the International Monetary Fund (IMF) forecasts global Gross Domestic Product (GDP) growth to expand by 3.7 per cent in 2018 and 2019.
Amid the trade wars, Malaysia should position itself as a safe haven for foreign companies in line with ASEAN as a Zone of Peace, Freedom and Neutrality.
“The Malaysian economy is projected to grow by 4.9 per cent next year, with services and manufacturing driving the expansion. This is an acceleration from the anticipated 4.8 per cent growth in 2018,” said Lim
Malaysia, he added, would also continue to adopt an open trade and investment regime to promote high-quality economic growth, attract strategic investments, create skilled jobs and embrace the Industrial Revolution 4.0. –Bernama
